Binance hopes to enable smooth BTC deposits and withdrawals while tackling network congestion issues.
On June 20, cryptocurrency exchange Binance announced that it had commenced operating nodes on the Bitcoin Lightning Network as a crucial step toward integrating it for deposits and withdrawals.
In a tweet, Binance acknowledged users who noticed their new Lightning nodes and confirmed their presence. However, Binance highlighted that additional technical work must be completed before the Lightning integration is fully implemented, promising to provide updates along the way.
In response to the congestion witnessed on the Bitcoin BTC $28,896 network on May 7, Binance announced its plans to incorporate the Lightning Network to alleviate bottlenecks. In a tweet, Binance mentioned its ongoing efforts to enable BTC Lightning Network withdrawals, recognizing its potential in such situations. The increased congestion was primarily caused by a surge in BRC-20 transactions, with the popularity of memecoins being a contributing factor.
The Bitcoin Lightning Network is a layer-two protocol built on the Bitcoin blockchain to address scalability issues. It allows participants to create payment channels, conduct off-chain transactions quickly and inexpensively, and settle the channels on the Bitcoin blockchain when necessary. The Lightning Network aims to enhance the speed, scalability and privacy of Bitcoin transactions, making it more efficient for microtransactions while reducing fees and congestion on the main network.
Recently, Binance has been entangled in a legal battle with the United States Securities and Exchange Commission (SEC), causing a period of uncertainty for the company. However, there is a sense of relief after Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia approved a consent agreement between Binance, Binance.US and the SEC. The agreement effectively dismissed a temporary restraining order filed by the SEC that would have frozen all Binance.US assets.